Do You Really Need an Insurance Broker?

What does an insurance broker do? You may have already encountered many insurance companies. Each company has different packages or policies. How do you determine the right policy for you? How do you select the insurance company? What policy do you choose? This is where an insurance broker can help you.

Role of an Insurance Broker

An insurance broker specializes in insurance and risk management. He can act as an agent of an insurer. He should be able to fully explain to you what you need to know. The broker can help you identify your individual or business needs. He can help you decide what to insure.

An insurance broker can have a specialization. It can be a specific type of insurance. It can also be an industry. Find one that specializes in the field you need.

Insurance brokers give technical advice on the different insurance policies. They are well aware of the details, terms, and conditions. They are well adept in the benefits, exclusions, and costs. Thus, they can give you proper and sound advice on what you need. The broker should be able to recommend how to make the most out of any insurance budget.

The insurance broker has connections and access to different insurance companies. An experienced broker has a wide range of industry contacts. Thus, they can easily compare the offerings and policies. With the extensive clout, the broker can give better-customized policies. These may not be a standard for most clients. They can design the policies tailor-fit for your needs.

The broker has a thorough understanding of the insurance industry. By getting one, they can help guide you with the right decision on the policy.  The broker can explain to you special situations you have to be aware of.

An insurance broker can very well assist you with the whole process. He can liaise with the insurance and ensures a very smooth procedure in getting claims. The skills that the broker has comes in handy if there are disputes that arise.

The insurance broker can even negotiate premiums for you! This is a very big advantage you can get from an insurance broker.

Risk management is also an area of expertise by the broker. He can help you manage the risks, identify the pros and cons. He can help you weigh matters to choose what is best for you. He can help you get an insurance policy to help protect your assets or business.  By getting a broker, you can tap the in-depth knowledge of the broker to your advantage.

With an insurance broker, you can save time spent in talking to different companies. Imagine discussing your concerns, asking for quotations, reviewing each proposal, and negotiating. If you delegate this task to an insurance broker, you can save a lot of time.  Less worry too and less stress for you.

Money savings is also one advantage. The broker has already an established relationship with the insurance company. They can negotiate a very good policy for you. You can save on costs!

It is very important to find the right insurance broker you can work with. Start by checking out the number one insurance brokers in Perth. Talk to them to know more about how they can help you.

Costs of Getting an Insurance Brokers

There are two ways that insurance brokers earn. It can be a fee charged to clients for the services they render. It can also be a commission that they receive from the insurance company.  Check with your broker. Make sure you clarify these matters so as not to be surprised with hidden fees.  The fees should be per the Financial Services Guide Product Disclosure Statement. It should be laid out in the Statement of Advice.

As a whole, it may be cheaper for you to get a broker. The broker has a deep knowledge of the insurance industry. He can find you an affordable company or policy suited for you. You can ask the broker to negotiate to lower the premium.

In checking policies premiums, carefully check this to make sure it covers what you need. You may get a low premium then later be surprised it does not cover the items you need.

How to Choose an Insurance Broker

Have you heard of the National Insurance Brokers Association (NIBA)? They represent more than 90% of Australia’s brokers. The association has about 400 member companies. Their website has a listing of hundreds of national and regional brokers. They can be easily searched by area and specialization.

In getting an insurance broker, find one that is a good fit for you. It is a partnership and you want to make sure he is trustworthy.

Check the broker’s qualifications. Make sure he is well-experienced.

Ask the range and scope of services.  Ask who would serve you. You can also check the typical clients that they have, if similar to your case. Find out the processes and billings involved. If you wish, do a background check from clients that they had in the past.

If you need an insurance broker for your business, ask the company to present it to you. During the presentation, check business compatibility. Find out their level of servicing and commitment. Ask how they solve insurance claim problems.

Look for an insurance broker with Qualified Practising Insurance Broker or Certified Insurance Professional status.  Don’t be shy to ask for proof of their credentials. After all, you have to make sure you are dealing with a reputable insurance broker.

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About Geet Sharma

My Name is Geet Sharma Financial Blogger & Founder of Paisabank.org. We are a personal finance blog dedicated to finance & financial planners. The main aim of this blog is to help people to informed about financial decisions.
View all posts by Geet Sharma →

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